At a press conference at his Kingston office on Clinton Avenue, Cahill struck back at Ulster County Executive Mike Hein's criticisms over the loss of $22 million in county sales tax revenue.

In response to questions on the failure of a 1 percent sales tax revenue extension to pass the state Legislature last week, Cahill said he's never supported a sales tax. He called it a "bad tax" that's inherently unfair to poor people.

Yet Cahill said he would have supported it if the county agreed to his versions of bills that would have made the county assume the total cost of all local elections by Jan. 1, 2015, from local municipalities and one-third of the local share of costs for safety net programs, commonly known as welfare. Those bills had no senate sponsors.

Hein's office and Cahill have accused each other of failing to reach out to the other; both have denied the accusations.

County Budget Director JJ Hanson has said the revenue loss will cost Ulster County $1.8 million this year and total $22 million by the end of the 2014 fiscal year.

The county Legislature has convened a special ways and means committee meaning for Thursday to deal with the fallout. Cahill was invited to the meeting, but didn't commit to attending.

Hanson said everything is on the table, but at risk are non-mandated services such as the sheriff's road patrol, the community college, public works, youth services and contracts. Property tax levy increases were also possible, Hanson said.

Mayor Shayne Gallo got together last Thursday with local officials to rap Cahill for what they said was his preventing the extension. They said he had not reached out to them or their staff on the sales tax issue.

Cahill said he's spoken to several leaders in Ulster's Legislature and the executive office who believe they were the ones who had the power to make a deal with Cahill. He questioned if county leaders knew who was in charge of making decisions.

"My suggestion to the county is to get their act together," Cahill said.

Gallo said his city faces $3 million in lost sales tax revenue and $2 million in higher costs. Towns could also lose $790,000 in sales tax revenue, according to the executive's office.

Gallo said he was disturbed, dismayed and perplexed by the losses that could result in "20 to 40 layoffs," next year, tax levy increases of 15 to 20 percent or reprioritizing of capital projects throughout the city.

Police and firefighter layoffs were on the table. "This is the ruination of the City of Kingston," Gallo said.

But Cahill said the talk of crisis is overblown to put pressure on Cahill to crack on his demands. He said Hein has created this crisis, while Hanson insisted the crisis is real.

Cahill said the critics are spinning the facts and choose not to negotiate on his terms. "I don't govern with spin, I govern with substance," he said.

jnani@th-record.com

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